KYIV -- The Ukrainian Finance Ministry has selected BNP Paribas to launch letters of credit to realize a joint project with the World Bank entitled "Urban Infrastructure Development," reads a posting on the ministry's Web site.

"BNP Paribas won a tender to select a foreign bank to launch letters of credit as a part of a loan between Ukraine and the International Bank for Reconstruction and Development [part of the World Bank Group] for the Urban Infrastructure Development project," reads the report.

As reported, the Ukrainian government and World Bank started realizing the Urban Infrastructure Development project in February 2009: a $140 million credit is issued under the project. The credit agreement was signed on May 26, 2008. The government-secured credit is issued for 17 years with a Libor+4.01% interest rate. The project is being realized through selection and support of most urgent investment projects in the water supply, sewage system and solid household waste recycling areas. BNP Paribas has a subsidiary bank in Ukraine – UkrSibbank.

LINK: http://www.interfax.com.ua/eng/eco/76098